Murdoch now expected to pay at least 825p per share if his takeover proposals are cleared by the government

Under pressure: Rupert Murdoch will have to make a higher offer for the remaining shares in BSkyB he doesn't own if his takeover plans get regulatory approval

Broadcaster BSkyB revealed today that its profits had surged by 26 per cent in an 'outstanding' six months - putting pressure on News Corp's takeover plans.

In a period when the satellite company broke through the 10million customer mark, BSkyB said turnover rose 15 per cent to £3.2billion while operating profits hit £520million for the six months to the end of December.

A 700p per share bid from Rupert Murdoch's company was rejected last summer and the strong results will put pressure on the media giant
to deliver a sharp hike in any future offer.

Mr Murdoch is still waiting for regulatory approval for his takeover bid but shares in the company were trading at 771p per share this morning, up two per cent.

Last June, when the 79-year-old made his offer Sky dismissed it as an undervaluation and called for offers in excess of 800p a share but agreed to work with News Corp to clear the way for a potential merger.

Richard Hunter, head of UK equities at Hargreaves Lansdown Stockbrokers, said: 'Despite the inevitable distractions of the News Corp bid, Sky continues to power ahead regardless.

'Its recent growth trajectory has been maintained, with the 10 million customer mark having been surpassed by the end of last year as forecast.

'The News Corp situation could drag on for a while yet, but in the meantime Sky is firing on all cylinders.'

Analysts at Numis Securities have already raised their target price from 800p to 825p to reflect the rise in the stock market since News Corp first made its approach.

Buyout: Rupert Murdoch offered 700p per share for News Corp last summer - but is likely to have to pay closer to 825p now

This week, Culture Secretary Jeremy Hunt said he was minded to refer News Corp's bid for the shares in BSkyB it does not already own to the Competition Commission but gave the group more time to deliver undertakings.

The number of Sky customer numbers increased by 140,000 in the final
quarter of 2010 as it reported the fastest broadband growth for more
than two years.

There was also a 68 per cent increase in subscriptions to high definition
television.

Almost one in four Sky customers now take combined television, broadband and telephone contracts, the company said.

Sky also announced plans to create 1,500 jobs by opening new contact centres across the UK, with a new site in Sheffield the next to open.

Later this year a new service, Sky Anywhere, will launch to allow customers to access Sky programmes on their computers when they are away from their homes.

The service will be supported by the acquisition of public Wi-Fi operator The Cloud.

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